Massimo Zanetti Beverage Cafés
Date of Incorporation: 2007
Franchising Since: 2007
Headquarters: Virginia
Business and Description: Massimo Zanetti Beverage Cafés USA INC, is an indirect, wholly-owned, subsidiary of Massimo Zanetti Beverage USA Corp., a Delaware corporation. Massimo Zanetti Beverage Cafés offers the opportunity to franchise a Chock Café and a Segafredo Zanetti Espresso.
Franchise Offer: (i) Chock Café license agreement, the franchisee will operate a business specializing in the sale of gourmet and specialty coffee, tea, and other beverages, including a proprietary line of frozen beverages, as well as whole bean or ground coffee, breakfast, bagels, pastry and baked goods, sandwiches, salads, pastry, muffins and assorted baked goods, as well as other assorted products. Chock Cafés can be full-service or in a smaller kiosk-sized format. (ii) Segafredo Zanetti Espresso (SZE) license agreement, the franchisee will operate a business specializing in the sale of espresso coffee, specially prepared panini and aperitifs, and related product such as alcoholic beverages, light snacks, and pastries. SZE Cafés can also be full-service or in a smaller kiosk-sized format.
Financial Assistance: Massimo Zanetti Beverage Cafés USA does not offer any direct of indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: The franchisee and staff must attend and successfully complete the initial training program. The franchisee will bear the cost of all training. The Coffee University Program is up to a two-day program, consisting of classroom and in-store training, covering subjects such as the general background of the business, the operation of a Café (including training of employees, operational controls, administrative procedures and policies, and advertising).
Territory: The License agreement does not grant or imply any protected area or territory for the Café.
Renewal and Termination: The term of License is 10 years with an option to renew for an additional 10 years with a renewal fee of 50% of the then initial license fee. The franchisor will not terminate without cause.
Obligations and Restrictions: The License Agreement does not require the franchisee to participate personally in the direct operation of the Café. Under the Area Development Agreement, upon the opening of the fifth Café, and for each additional five Cafés, the franchisee must employ at least one full-time supervisor to supervise and coordinate the operation of the Cafés. The franchisee may sell and provide only products and services that conform to Massimo Zanetti Beverage Cafes USA standards and specifications.
Total Number of Company Owned Units for 2007: 0
Total Number of Company Owned Units Opened for 2007: 2
Total Number of Company Owned Units Closed for 2007: 0
Total Number of Franchised Units for 2007: 79
Total Number of Franchised Units Opened for 2007: 30
Total Number of Franchised Units Closed for 2007: 3
Investment Table:
Estimated Initial Investment for Single Unit Franchise:
| Name of Fee | SZE Kiosk Low | SZE Kiosk High | SZE Cafe Low | SZE Cafe High |
|---|---|---|---|---|
| Initial franchise fee and expenses | $10,000 | $10,000 | $20,000 | $20,000 |
| Land lease/rent | $0 | $20.000 | $16,000 | $125,000 |
| Site Preparation | $1,000 | $4,000 | $80,000 | $500,000 |
| Leasehold Improvements | $1,000 | $20,000 | $80,000 | $500,000 |
| Equipment and signs | $3,000 | $30,000 | $40,000 | $75,000 |
| Kitchen Small wares, Crockery, Cutlery, and other supplies | $10,000 | $40,000 | ||
| Security Deposits | $100 | $2,000 | $1,500 | $1,500 |
| Start-up and Supplies | $1,000 | $4,000 | $2,000 | $5,000 |
| Opening Promotion | $5,000 | $5,000 | $10,000 | $10,000 |
| Insurance | $0 | $2,500 | $3,000 | $5,000 |
| Training | $500 | $1,750 | $2,000 | $4,500 |
| Business Licenses | $0 | $1,000 | $350 | $2,500 |
| Liquor License | $5,000 | $40,000 | ||
| Professional Fees | $500 | $1,000 | $2,000 | $10,000 |
| Additional Funds (3 Months) | $500 | $5,000 | $2,000 | $10,000 |
| Total | $22,600 | $106,250 | $194,000 | $848,000 |
SZE = Segafredo Zanetti Espresso
| Name of Fee | Chock Kiosk Low | Chock Kiosk High | Chock Café Low | Chock Café High |
|---|---|---|---|---|
| Initial franchise (license) fee and expenses | $7,500 | $7,500 | $15,000 |
$15,000 |
| Lease/Rent | $0 | $15,000 | $3,000 | $50,000 |
| Site Preparation | $1,000 | $4,000 | $30,000 | $100,000 |
| Leasehold Improvements | $1,000 | $20,000 | ||
| Equipment and Signs | $3,000 | $30,000 | $20,000 | $100,000 |
| Security Deposits | $100 | $2,000 | $1,500 | |
| Start-up and Supplies | $1,000 | $4,000 | $2,000 |
$5,000 |
| Opening Promotion | $5,000 | $5,000 | $5,000 | $5,000 |
| Insurance | $0 |
$2,500 | $3,000 | $5,000 |
| Training | $500 | $1,750 | $2,000 | $4,500 |
| Business Licenses | $0 | $1,000 | $350 | $1,000 |
| Professional Fees | $500 | $1,000 | $2,000 | $10,000 |
| Additional Funds(3 Months) | $500 | $5,000 | $2,000 | $10,000 |
| Total | $20,100 | $98,500 | $84,500 | $283,000 |
Ongoing Costs for Single Unit Franchise:
| Name of Fee | Amount |
|---|---|
| Purchase of Products | Will vary under circumstances |
| Renewal Fee | 50% of the then-current initial license fee |
| Supplier Testing Fee | Charge not to exceed the reasonable cost of inspection and the actual cost of the test |
| Indemnifi¬cation | Will vary under circumstances |
| Rent | Will vary under circumstances |
| Transfer Fee (Area Development Agreement only) | $5,000 |
The above information has been taken from the UFOC/FDD of Massimo Zanetti Beverage Cafés USA INC.
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